NERC’s New Directive Addresses Refunds for Prepaid Meters

  • NERC Directs Nigerian Electricity Customers to Seek a Three-Year ‘Energy Credit’ Refund for Prepaid Meters Obtained Through MAP Scheme.
  • NERC’s Directive Follows Recent Price Hike for Prepaid Meters and Mandates DISCOs to Refund Meter Costs Over 120 Equal Installments Through Energy Credits.

The Nigerian Electricity Regulatory Commission (NERC) has instructed customers to request a refund in the form of Energy Credit over a three-year period from Electricity Distribution Companies (DISCOs). This is for prepaid meters acquired under the Meter Asset Provider (MAP) program. NERC clarified that this directive aligns with the national mass metering regulations established in 2021.

This order, identified as NERC/2023/001 and signed by Commission Chairman Sanusi Garba and Commissioner for Legal, Licensing & Compliance, Dafe Akpeneye, follows a recent increase in single-phase and three-phase meter prices. The new prices are N81,975.16 (up from N58,661.6) for single-phase meters and N143,836.10 (up from N109,684.36) for three-phase meters.

According to the directive, prepaid meters typically have a lifespan of about 10 years. NERC’s directive, titled ‘Order on the Reimbursement Meter Cost, emphasises that under the Meter Asset Provider and National Mass Metering Regulations, 2021, Distribution Licensees are obligated to reimburse customers who have paid for meters through energy credits distributed over a maximum period of 36 months.

Furthermore, the directive specifies that the cost of prepaid meters paid by customers under the MAP scheme should be spread out over 120 equal instalments and refunded through energy credits calculated based on the prevailing tariff at the time of vending. NERC’s regulations require DISCOs to refund customers for prepaid meters acquired under the MAP framework through energy credits with a specific repayment schedule. This also applies to upfront payments made by customers when the MAP framework began in 2018.

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